The Global Economic Prospect report published recently by the World Bank (WB) has projected a robust 7.8 per cent growth for the Indian economy in the year 2016.
In its report bank also has cited strong investor sentiment in India and the positive effect on real incomes of the recent fall in oil prices.
World Bank also predicted that India will be the fastest growing economy in the world in the next three years and would outpace China.
Key highlights from report
- It will grow at a 7.9 per cent growth in the next two years 2017 and 2018.Forecasted growth for India
- According to its latest Global Economic Prospect report which is released bi-annually, the World Bank reduced India’s growth rate by a slight 0.2 per cent in 2015 and 0.1 per cent in both 2016 and 2017
- India’s stock markets and currency have been largely resilient during bouts of volatility in global financial markets over the past year.
- However, there are some downside risks to India’s growth that are mostly domestic. The progress on land reforms can lead to investment delays.
- Failure to pass the Goods and Services Tax (GST) bill by Parliament may hamper the Indian government’s ability to increase the infrastructure spending.
- Among BRICS nations: China will grow at 6.7 per cent in the year 2016 and 6.5 per cent each in next two years 2017 and 2018.
- Brazil and Russia are expected to remain in recession during the year 2016 among the major developing economies.
- South Asia Region: It has been projected to be a bright spot in the emerging and developing economies, with growth rate up to 7.3 per cent in 2016.
- This region would not be affected by slowdown in China as it has smaller trade links with China than other regions. Being net importer of oil it will be also benefited from lower global energy (oil) prices.